Saturday, November 2, 2024

Textile manufacturers struggle as illegal “bonda” clothing floods market

By Eyasu Zekarias

Ethiopia’s textile manufacturers are facing a growing crisis as they struggle to compete with the widespread distribution of “bonda” clothing—second-hand garments that are flooding the market at low prices. The Ethiopian Textile and Garment Manufacturers Association has raised alarms about the impact of these illegal imports, which are significantly undermining the competitiveness of local producers.

The influx of bonda clothing has made it increasingly difficult for Ethiopian textile manufacturers to sell their products. According to the association, these second-hand garments, often referred to as “Taiwanese” in the market, are dry-washed, tagged, and distributed across various boutiques in cities. The problem has escalated to the point where many manufacturers are being forced out of the market due to their inability to compete on price and quality.

Over the past decade, Ethiopia’s textile and apparel sector has generated around $1 billion in export revenue, while imports have totaled approximately $5.4 billion, leading to a trade deficit of $4.4 billion. This disparity highlights the challenges faced by the local industry, which is now further exacerbated by the proliferation of illegal clothing products.

Ageazi G/selassie, the general secretary of the Ethiopian Textile and Garment Manufacturers Association, emphasized the severity of the issue. “We have raised this matter with the relevant government bodies in various forums, but the problem persists. The distribution of these clothing products continues to expand,” he said.

Despite the fact that the importation of illegal clothing is prohibited under Ethiopian law, the market for these garments is growing rapidly. The association noted that these products enter the market through various channels, often at prices that make them highly attractive to consumers, who perceive them as being of acceptable quality.

The impact of this influx is particularly severe on small-scale manufacturers and vulnerable businesses, many of which have been driven out of the market. In rural areas, a different type of second-hand clothing, known as “relief,” is being widely distributed, further threatening local producers.

A study conducted by the Ethiopian Textile and Garment Manufacturers Association last year highlighted the significant challenges posed by second-hand garments to the domestic textile industry. The study found that bonda clothing accounted for 53% of the country’s textile market, with its low price driving high demand.

The global market for second-hand apparel is substantial, valued at USD 71.22 billion, and is expected to reach USD 282.7 billion by 2030. This growing market poses a significant threat to local textile industries in Ethiopia and other countries, as consumers increasingly turn to these cheaper alternatives, putting further pressure on domestic manufacturers.

The association, which represents over 200 manufacturing members, is calling for stronger enforcement of laws against illegal clothing imports and greater support for local manufacturers to help them compete in an increasingly challenging market.

Related Stories